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(Kitco News) – Gold futures prices are trading unchanged in early US trading Tuesday and are pausing after Monday’s good gains and ahead of what is likely to be the market event of the week: Federal Reserve Chairman Jerome Powell’s remarks to US lawmakers. Shaky US stock indexes and a weaker US dollar index earlier this week, combined with the rebound in crude prices, appear to have put at least a floor below the gold and silver markets. April gold futures were last up $ 1.80 to $ 1,809.90 and March silver on Comex was down $ 0.095 to $ 27.97 an ounce.
The market is looking forward to Powell’s testimony on US monetary policy before the Senate Banking Committee on Tuesday morning. The market will be especially interested in hearing what Powell has to say about rising US Treasury yields and the prospects for rising inflation. The stock market was reeling earlier this week due in part to concerns about rising bond yields that are beginning to pull investors’ money out of the stock market. Today’s Barron story was titled: “The reflation trade is on the right track. How long can investors keep smiling? “Still, the US stock indices are not far below their recent all-time highs and the attitudes of traders and investors remain generally optimistic.
Global stock markets were mixed overnight, with Asian stocks mostly rising and European stocks mostly falling. US stock indices point to mixed openings when the New York day session begins.
In other late-night news, Bitcoin’s price is hitting earlier this week and has fallen close to 15% from the all-time high seen over the weekend. If the declines in Bitcoin continue, it could put a bottom below the competing asset class, the gold and silver markets.
Today’s key “outside markets” see Nymex crude oil futures prices rise slightly, reaching a 13-month high and trading around $ 62.00 a barrel. The US Dollar Index is weaker and firmer earlier today, but the bulls have recently faded. The yield on the 10-year US Treasury is currently reaching 1.37%.
US economic data to be released Tuesday includes Goldman Sachs and Johnson Redbook’s weekly retail sales reports, the monthly house price index, the S&P Core-Logic home indices, the company’s business survey. Richmond Fed and the Consumer Confidence Index.
Technically, the February gold futures bears have the general short-term technical advantage amid a six-week downtrend on the daily chart. The Bulls’ next upside price objective is to produce a close in April futures above solid resistance at $ 1,856.60. The next short-term downside price objective for the bears is pushing futures prices below solid technical support at the February low of $ 1,759.00. The first resistance is seen at the overnight high of $ 1,815.20 and then at $ 1,820.00. The first support is seen at the overnight low of $ 1,802.30 and then $ 1,800.00. Wyckoff Market Rating: 3.5
March silver futures bulls have the overall short-term technical advantage. The next upside price objective for silver bulls is closing prices above solid technical resistance at the February high of $ 30.35 an ounce. The next downside price objective for the bears is the closing prices below the solid support at $ 26.00. The first resistance is seen at today’s high of $ 28,425 and then at $ 28.50. The next support is seen at this week’s low of $ 27.33 and then $ 27.00. Wyckoff Market Rating: 6.5.
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